“Although global commodity prices have shown some recovery since this time last year, whole milk powder and particularly skim milk powder prices remain under 10 year averages,” he says.

He announced a review looking at strategy and corporate structure, including the profit sharing mechanism and capital structure.

“I see this review as a fundamental next step to strengthen MG for the future,” says Mervis.

Last month Murray Goulburn announced the closure of dairy processing centres at Edith Creek, Tasmania, and Rochester and Kiewa in Victoria with the loss of more than 300 jobs. The company also announced write-downs of $410 million.

“While the previous decisions resulting from the manufacturing footprint review, including the announcement of three site closures were necessary, I do not consider them alone to be sufficient to move the business forward,” says Mervis.